I own a franchise. The franchisor want to make a change to our agreement. He is currently charging 1% gross per month for national marketing.

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I own a franchise. The franchisor want to make a change to our agreement. He is currently charging 1% gross per month for national marketing.

He wants to change it to 3% and has requested that we sign an addendum. Does he need to get 100% of the franchisees to agree or just a majority? Many franchisees are not in favor of the change – we just can’t afford it, but we know that the franchisor will make life miserable for anyone that does not go along. Is there anything we can do to fight it as a group so that individuals will not be punished?

Asked on May 26, 2009 under Business Law, New Jersey

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

This is not simply a question that can be answered here.  It depends on how your franchise agreement is written -- what law applies -- usually these big contracts give a controlling law -- a particular state.  Refer to your contract and then contact a lawyer in that state.


Try www.attorneypages.com and then check his or her record at that State's State Bar.

Also read the following:

http://business-law.freeadvice.com/franchise_law/


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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